Williams-Sonoma Inc (WSM)
Return on equity (ROE)
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 949,762 | 1,127,900 | 1,126,340 | 680,714 | 356,062 |
| Total stockholders’ equity | US$ in thousands | 2,127,860 | 1,701,050 | 1,664,210 | 1,651,180 | 1,235,860 |
| ROE | 44.63% | 66.31% | 67.68% | 41.23% | 28.81% |
January 28, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $949,762K ÷ $2,127,860K
= 44.63%
Williams-Sonoma Inc's return on equity (ROE) has shown fluctuating performance over the past five years. In fiscal year 2024, the company's ROE was 44.63%, indicating that for every dollar of shareholders' equity, the company generated a return of 44.63 cents in profit. This represents a decrease from the previous year's ROE of 66.31%.
Despite the decline in ROE in 2024, Williams-Sonoma Inc's return on equity remains relatively strong compared to fiscal year 2020 when it was 28.81%. The company experienced a notable peak in ROE in fiscal year 2022 at 67.68%, reflecting a robust profitability performance.
It is important to further examine the factors contributing to the fluctuations in ROE to understand the company's operational efficiency, profitability, and leverage. Investors and stakeholders should monitor Williams-Sonoma Inc's ROE trends over time to assess the company's ability to generate profits from shareholders' equity effectively.